§ Mr. Michael Morrisasked the Secretary of State for Energy to what factors he attributes the difference in profitability between the South of Scotland Electricity Board and the Central Electricity Generating Board.
§ Mr. GoodladProfitability for the electricity industry in Scotland is most appropriately measured on a joint basis because the two Scottish electricity boards collaborate closely in operating the generation and transmission system in a single merit order, sharing the costs through a joint generation agreement. Comparisons with the electricity industry in England and Wales are best made with that industry as a whole since, unlike the Scottish boards, the CEGB is responsible for generation and transmission but not distribution. In 1985–86 the Scottish boards made a return on average net assets employed measured on a current cost basis of 2.93 per cent. compared with 2.65 per cent. for the electricity industry in England and Wales. Among the factors leading to the higher profitability in Scottish boards were the higher proportion of nuclear power and the availability of hydroelectric power on the Scottish system.